Revised FY2025

Proposed Budget and

FY2026 Forecast

Finance and Capital Committee

February 8, 2024

1 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

Revised FY2025 Proposed Budget
and FY2026 Forecast
Finance and Capital Committee
February 8, 2024

2 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

Revised FY2025 Proposed Budget and FY2026 Forecast

Purpose
The Challenge – Unprecedented Deficits Begin

FY2024 Mid-Year Progress

FY2025 and FY2026 Path Forward

Jurisdictional Operating Investments

Targeted Service and Fare Optimization

Administrative Efficiency

Metro’s Capital Program

Metro’s Strategic Transformation Program

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Revised FY2025 Proposed Budget and FY2026 Forecast

Metro At-A-Glance
METROBUS METRORAIL METROACCESS

OPERATING BUDGET
$4.8B $2.3B
REVISED FY2025
BUDGET CAPITAL BUDGET 40.7M 117.2M 28.5M
SCHEDULED SCHEDULED SCHEDULED
$2.5B REVENUE MILES REVENUE MILES REVENUE MILES

98 RAIL STATIONS
Within ½ mile of Metrorail stations
and bus stops in the Compact area:

2nd  60% of population (2.8M people)

 70% of jobs (1.7M jobs)
 50% of employers (134,400 businesses)
40
STATIONS
DC
BUSIEST RAIL TRANSIT SYSTEM; The ½ mile around Metrorail stations is just

26
3% of the region’s land but contains:

6th  30% of property value ($328B)

 40% of jobs
MD STATIONS

 65% of new office development

BUSIEST BUS NETWORK IN THE U.S.  50% of new apartments 32
 25% of affordable housing VA STATIONS
 13 Fortune 500 headquarters

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Revised FY2025 Proposed Budget and FY2026 Forecast

Metro’s Strategic Transformation Plan is North Star

to Deliver a Modern, World-Class Transit System
In February 2023, Metro adopted its Strategic Transformation Plan Your Metro,
the Way Forward. The plan identified four strategic goals: Service Excellence,
Talented Teams, Regional Opportunity & Partnership, and Sustainability. This
plan was developed by the Board of Directors and management to guide Metro’s
decision-making over the next five years. It is serving as our North Star and
guides how we fund the Metro the region needs, wants and deserves. The plan
establishes clear priorities for Metro, expands transparency around performance
metrics, and promotes collaboration with our teams and partners. Metrics
identified in the plan are used to drive performance and operational decisions at
Metro and are transparently measured in regular reports and our newly launched
Service Excellence Dashboard.

Deliver safer and more reliable service to customers, Design transit service to move more people and
progressing Metro’s automation efforts. equitably connect a growing region.

Attract, develop, and retain top talent where Manage resources responsibly to achieve a
individuals feel valued, supported, and proud of sustainable operating, capital, and environmental
their contribution. model.
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Revised FY2025 Proposed Budget and FY2026 Forecast
A Healthy Region Needs Great Transit
Metro’s goal is to provide the region with a
world-class integrated transit system offering
all-day, safe, customer-focused service through
modernized vehicles and infrastructure.
Good service is the key to generating
ridership. While recent service improvements,
simpler fares, and renewed emphasis on
customer experience are growing ridership and
customer satisfaction, additional targeted
investments in transit are needed for the region
to grow and meet its economic, mobility, housing
and environmental goals.
Opportunities include:
 Adjust service to demand and regional goals
 Implement the Better Bus network redesign
 Bus lane & technology investments to
increase bus speed and reduce costs
 Rail modernization program to replace
antiquated infrastructure, vehicles, and
obsolete signaling system
 Responsible and affordable fares, with fare-
capping and promotional opportunities
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Today’s Standard of World-Class Transit
Metro’s original mandate was to “set an example for the Nation” of world-class public transit. Today, the
standard set by the best transit systems has evolved to include:
All-Day Service. Fast and frequent service throughout the day and week, with safe, on-time operation.
Service focused on providing travel needs for all kinds of trips. Disruptions are limited and predictable.
Modern Vehicles and Infrastructure. Stations with clear wayfinding, real-time service information, and
platform screen doors. Trains feature open gangways and efficient, communication-based train control,
capable of Grade of Automation 3/4. Bus service built around a network of rapid bus routes with high-
capacity buses, and a zero-emission bus fleet.
Integrated System. Customers experience transit as a unified system, with seamless connections
between rail, bus, bike and pedestrian networks. Fares are integrated across the region with easy
payment for customers.
Passeig de Colom Châtelet Station – Métro Line 14 Elizabeth Line Train–Class 345 Yishun MRT Station
London
Barcelona Paris Singapore
If we invest in transit:
• Attract and retain businesses, talented workers
• Reduced carbon footprint
• Grow tourism and leisure sectors
If we don't invest in transit:
• Reduced economic development opportunities
• Traffic congestion will get even worse
• Increase in safety risks
Revised FY2025 Proposed Budget and FY2026 Forecast

FY2025: Unprecedented Deficits Begin

The Challenge FY2025 $750M Deficit Drivers in Detail
Fundamental changes in post-pandemic travel patterns and Metro’s $750 million deficit is primarily driven in three categories: 1) the jurisdictional
unprecedented inflationary pressures have imposed fiscal subsidy credit provided in 2020; 2) high inflationary costs, driving higher labor and
constraints significantly impacting future operations and investments. non-labor expenses; and 3) the decline of revenue due to lower ridership.
Regardless of proactive management actions taken by Metro to
control expenses, under the current subsidy model Metro faces a
structural funding shortfall of $750 million in FY2025, a deficit equal Jurisdiction
to more than 25 percent of the operating budget. Subsidy Credit
FY2025 Operating Gap

At the onset of the pandemic,

Metro provided support to
jurisdictions in the form of a $196M Decreased Revenue
subsidy reduction and (26%)
forgone 3% increases. $288M Since Pandemic
(38%)
Overall ridership forecast to
Inflation & Collective be approximately 25% below
Bargaining Agreements $266M pre-pandemic levels along
(36%) with greater prevalence of
Metro’s contractual shorter distance trips outside
commitments and inflation of weekdays. Parking and
soared by 10% in one year advertising revenues also
during the pandemic and impacted.
FY2025 original outlook Projection as of June 2023
assumed continued inflation
of approximately 5%.

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Revised FY2025 Proposed Budget and FY2026 Forecast

FY2024 Mid-Year Progress

Aggressive Management of Expenses FY2024 Q2 YTD Variance
Continues
($M) Budget Actual $ %
Metro’s ridership continues to recover from the
impacts of Covid-19 demonstrating significant Passenger Revenue $194.2 $167.8 - $26.4 - 13.6
year-over-year gains, with ridership reaching Non-Passenger Revenue $51.1 $56.1 $5.1 9.9%
approximately 70 percent of pre-pandemic
levels; however, changes in the mix of trips has Total Revenue $245.3 $223.9 - $21.4 - 8.7%
reduced average fares and passenger revenue
below budgeted amounts. Personnel $782.8 $783.2 - $0.4 - 0.0%

Non-Personnel $376.2 $340.3 $36.0 9.6%

Metro is closely managing its expenses and
projects savings for the remainder of the year to Total Expenses $1,159.1 $1,123.5 $35.6 3.1%
offset these revenue losses. Despite the reduced
revenue outlook, Metro expects to end FY2024 Gross Subsidy* $913.8 $899.6 - $14.2 - 1.6%
with a balanced budget due to aggressive
Federal Relief $287.7 $272.8 - $14.9 - 5.2%
expense management, allowing it to preserve
$95 million in one-time savings to apply to the * Gross Subsidy refers to operating expense less operating revenues and Federal relief and does not reflect/equal
actual jurisdictional subsidy payments.
FY2025 deficit.
​Note: Amounts may not sum due to independent rounding

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Revised FY2025 Proposed Budget and FY2026 Forecast

FY2025 and FY2026 Path Forward

2- Year Regional
Regional Framework for a Balanced Budget
Use of Funds Budget
Transformation Framework
Revised
The revised proposed budget adopts a regional approach FY2025 FY2026
($M) FY2024
that requires collaboration and contributions from all Proposed Forecast
stakeholders. Aggressive expense management by Metro Budget
would keep FY2025 gross expenses at FY2024 levels (0% Initial Expenses $2,459 $2,575 $2,704
growth).
Administrative Efficiency - 50 - 52
Metro: Salary and wage adjustments, recurring
Salary and Wage Adjustment - 38 - 77

Expense
administrative efficiencies, and other cost reductions
resulting in $119 million and $174 million in savings in Inflation Reduction - 11 - 25
FY2025 and FY2026, respectively.
Target Service Cuts - 20 - 20
Customers: At least 12.5 percent fare increase on Total Savings - 119 - 174
Metrobus, Metrorail, and MetroAccess beginning in FY2025,
and up to 25 percent on late nights and weekends (with Gross Expenses $2,459 $2,457 $2,530
$2.50 cap). Additional PM (above $60M) - 139 - 104 - 114

Jurisdictions: Additional jurisdictional investment to replace Expense after PM Transfer 2,320 2,352 2,416
prior reductions of jurisdictional funding to Metro and
adjustments for ridership and inflation.
Assumptions
Personnel & Non-personnel: 0% salary and wage increase in FY2025 for L689,
L922 and non-represented employees subject to the collective bargaining; CPI
reduced from 5% to 3.5% in FY2025 and from 5.0 to 3.0% in FY2026

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Revised FY2025 Proposed Budget and FY2026 Forecast

Source of Funds
Revenue
Proposed fare increase of least 12.5 percent on Metrobus, Metrorail, and
MetroAccess beginning in FY2025, and up to 25 percent on late nights and
weekends (with $2.50 cap) would increase revenue by $24 million and efforts
to improve fare collection recovery result in additional $12 million for a net
increase of $36 million in FY2025. Continued ridership growth increases
FY2026 revenue by $10 million.
Full-Year 2- Year Regional
Forecast Transformation Framework
Revised
FY2025 FY2026
FY2024
Proposed Forecast
($M) Budget
Initial Revenue $452 $452 $488

Revenue Recovery* $12 $10

Revenue

Fare Increase $24

Subtotal $36 $10

Total Revenue $452 $488 $498

* E.g., ridership growth, long distance trip recovery, new fareboxes and faregates

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Revised FY2025 Proposed Budget and FY2026 Forecast

Jurisdictional Operating Investment

Metro’s funding jurisdictions as of February 2, 2024 Revised
have communicated $480 million in additional Additional FY2025 FY2026 One-Time
FY2025 Regional Proposed 3% Savings FY2026
funding in FY2025 above the 3 percent cap. These ($M) Base Investment Budget* Growth* Expiration* Forecast*
respective additional contributions for FY2025 are
reflected below. Maryland budget includes $150 Expense $2,352 $2,416
million in his FY2025 budget; there are budget Revenue ($488) ($498)
amendments moving through both Houses of the
Virginia legislature which reflect the $130 million Gross Subsidy $1,865 $1,918
funding level. On February 1, 2024 District of One-Time Savings ($95) $0
Columbia leadership sent a letter indicating their
commitment to $200 million in additional subsidy. Subsidy $1,290 $480 $1,770 $53 $95 $1,918
District of Columbia $462 $200 $662 $20 $36 $717
The Metro subsidy formula sets the level of subsidy
for each jurisdiction proportionate to the other Maryland $488 $150 $638 $19 $34 $691
jurisdictions and the various commitments will need Virginia $340 $130 $470 $14 $25 $510
to be reconciled as the Board approves this year’s
Note: amounts may not sum due to independent rounding
budget. *The subsidy amounts reflect additional contributions, are inconsistent with Metro’s historical subsidy formula, and will need to be
reconciled
For FY2026, the forecast assumes funding levels
increase by 3 percent, plus each jurisdiction’s share Funding Requirements Beyond Metro’s Operating Subsidy
of the $95 million of one-time savings from FY2025.
FY2026 amounts are forecast estimates and may Amounts exclude 24-Hour Overnight Bus, student programs, reimbursable agreements,
change as a result of Metro’s FY2026 budget Safety and Security grant programs, Joint development projects, and any other
process and Board direction. programs separately agreed upon.

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Revised FY2025 Proposed Budget and FY2026 Forecast

Targeted Service and Fare Optimization

More Targeted Rail Service. Efficiently deliver frequent all-day service to drive ridership
and revenue growth. Schedule peak service periods to align with ridership levels.
Operate more six-car trains where shorter trains provide sufficient capacity. Considering
reduced service levels on holidays with low ridership.

Redesigned Bus Network. Maintain bus service levels and begin Better Bus
implementation. The Year One Network reallocates existing resources to deliver more
value to the region, adapting to how customers travel now.

More Fare Revenue. Increase fares by 12.5% to keep pace with inflation. Reduce fare
evasion with system-wide high-barrier faregate installation and increased fare enforcement.
Make it easier to pay with increased use of Metro Lift and Senior reduced fare programs.

Optimize service to deliver the most useful network Revenue Ridership Parking Rates
with available resources: Fare Increase Scenario Impact (M) Impact (M)  Keep parking rates unchanged to
 Adapt Service. Adapt rail and bus service Baseline $362.2 233.3 encourage use of available capacity at
capacity with targeted changes while sustaining 5% $10.0 -4.1 parking facilities; raising parking rates
good frequency to grow ridership. 12.5% $22.2 -10.2 would be expected to reduce growth in
 Provide Access to More Destinations. Reduce long-distance Metro commutes,
12.5% + up to 25%
customer travel times and increase access to jobs $23.9 -11.3 lessening future fare revenue
late-night/weekend (with $2.50 cap)
and opportunity. 20% $33.9 -15.2 Fares
 Optimize Use of Metro’s Assets. Manage railcar 25% $40.4 -19.0  Balance increasing revenue and
and bus fleets to deliver high asset utilization and continuing to grow ridership
provide good service at low marginal cost.
 Considering modifying weekend and
late-night fares for additional revenue
in response to strong ridership
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Revised FY2025 Proposed Budget and FY2026 Forecast

Administrative Efficiency
Capital ($25M)
Metro Has Identified Over $113M of Efficiencies FY2025 Capital Administrative Efficiencies ($25M)
• Right-size administrative and consultant support costs for capital program management.

• Modernize standards, requirements, and practices for longer-term structural savings.

Capital
FY2025 Administrative $25M Operating Budget Efficiencies ($88M)
Efficiencies (22%) Salary and Wage Freeze ($38M)
$113M Operating Freeze wages of all non-represented employees and for two of Metro’s largest collective
Total Efficiencies Salary and Wage Freeze $38M bargaining units.
(34%)
Cost Efficiency Task Force ($50M)
Cost Efficiency Task Force $50M Identified an additional $50 million across the Authority in ongoing expense reductions and
(Recurring) (44%)
savings for FY25 and beyond. These savings will not impact safety or service levels:
1. Administrative efficiencies: Call center consolidation, paratransit alternative
service delivery.
2. Reduced consulting service: Transition Metro Transit Police Department
(MTPD) training to in-house, staff augmentations reductions and right sizing
cleaning contracts.
3. Digital Transformation: Elimination of duplicative licenses, laptop/mobile
phone efficiencies, digital media efficiency & rightsizing of IT-related contracts.
4. Improved asset management: drone usage for automated inspections, fuel
savings and repair cost reduction on elevator and escalators.

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Revised FY2025 Proposed Budget and FY2026 Forecast

FY2025 Cost Efficiency Task Force Savings – $50 Million

Category Title Marketing/ Revised Description Impact Category Title Marketing/ Revised Description Impact
Call Center Eliminate Duplicative Consolidate certain duplicative or outdated
Merging two call centers to streamline operations.
Consolidation $1.8 Application Licenses​ software/systems. $2.0
Paratransit Alternative Reduce MetroAccess expenses by offering customers the Laptop and mobile Implement one-device policy and suspension of low-usage
Service Delivery option to utilize alternative (ride share) services. $14.8 phones efficiencies​ devices. $0.3
Building Consolidation Optimize resources, improve market targeting, and
Streamline efforts in warehouse sharing between rail Digital Media
and Streamlining enhance the overall effectiveness of digital marketing with less $0.2
services and facilities departments in Maryland, storage $13.7 efficiencies
of Facility Related waste and effort.
space sharing in Alexandria, VA..
Services​
Right-size IT-related Review cloud strategy to eliminate on-the-ground footprint;
Non-Revenue Vehicle
Reduce non-revenue fleet vehicles by December 2023. $0.2 contracts​ shift operations & management expenses in-house. $3.0
Fleet Reduction
Administrative Efficiencies $30.5 Digital Transformation $5.5
Metro Transit Police In-house police commissioning training eliminates fees paid Preventive track
Academy​ to Northern Virginia Criminal Justice Academy. $0.6 Ultrasonic maintenance, software, and training are serviced
rehabilitation resulting
by DPR Ultrasonic Technology, enabling Metro to optimize $4.5
Alignment of consulting in parts and materials
Reduce On-Call Legal Services contract. equipment.
services $1.5 savings​
Prioritize hiring in departments with high staff shortages such Expansion of
Reduction of Staff Inspecting structures with drones compliments hands-on
as Rail Transportation, Track & Structures and Car $2.0 automated inspection
Augmentation access requirements. $0.3
Maintenance. technologies:​ Drones
Fuel-efficient, on-demand taxi service alternative to
Gasoline fuel savings $0.4
MetroAccess service, also provides riders discounts.
Right-size cleaning Replace current cloth seats on buses with vinyl
contracts​ seats, eliminating the need for more frequent cleaning. $3.7 Elevator/Escalator Elevator and Escalator Acquisition Replacement plan allows
improved life- for less preventive maintenance requirements, resulting in $1.6
cycle management reduced repairs and certain spare parts.

Reduce Consulting Services $7.8 Improved Asset Management

$6.8
Total $50.6

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Revised FY2025 Proposed Budget and FY2026 Forecast

Metro’s Capital Program

Metro advances capital projects and annual capital maintenance programs to restore, sustain, and modernize the system.
The program also includes annual preventive maintenance transfers from the operating budget.

 Invest in the system to modernize and 10-Year Capital Plan

provide safe, efficient, and reliable service for Identifies viable initiatives to
customers, employees and the region address needs identified for next
~10 years; financially unconstrained
 Address the backlog of overdue state of good
repair needs
Six-Year Capital
 Sustain safety and reliability through recurring
Improvement Program
maintenance, rehabilitation, and replacement Capital investments anticipated for,
programs or continuing in, six-year capital
 Maintain financial stewardship and ensure program
audit compliance
 Reduce capital administrative expenses (by One-Year Capital Budget*
$25 million annually) Expenditure forecast for capital
projects and programs in current
 Support a sustainable and more equitable budget year
future for the region
*Does not include debt service and revenue loss from capital projects

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Revised FY2025 Proposed Budget and FY2026 Forecast

Capital Investment Categories

Although Metro’s Capital Program is currently fully funded, future funding constraints will shrink the capital
program, leaving state of good repair and modernization needs unmet as well as reduce reliability.

Sources of Funds Uses of Funds

Revised FY2025 Revised FY2025
Capital Investment Categories ($M) Proposed Budget Capital Investment Categories ($M) Proposed Budget
Debt Proceeds $946 Railcars and Railcar Facilities $457
Dedicated Funding from States $500 Rail Systems $386
Federal Formula Funds $470 Track and Structure Rehabilitation $297
System Performance and Formula $303 Stations and Passenger Facilities $371
PRIIA Match from States $149 Bus, Bus Facilities, and Paratransit $470
Federal PRIIA Funds $144 Operations and Business Support $319
Other $38 Total Capital Investments $2,300
Total Capital Program Cost $2,549 Revenue Loss from Capital Projects $10
Debt Service - Dedicated Funding $239
Total Capital Program Cost $2,549

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Revised FY2025 Proposed Budget and FY2026 Forecast

Debt Financing to Support the Six-Year

Capital Improvement Program (CIP)
 Through FY2023, Metro has issued approximately $2.95
billion in debt proceeds, including premiums

 Metro currently holds AA credit ratings on issuing

dedicated funding backed-debt

 Remaining debt issuance capacity is estimated at

approximately $3.4 billion over six-year CIP (FY2025-2030)

• Debt issuance is almost 30% of the $11 billion of total

funding capacity over six-year period

• Depending on the forecast for preventive maintenance

transfers, Metro may not be able to issue new debt
starting in FY2029 if the debt limit is reached in
FY2028

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Revised FY2025 Proposed Budget and FY2026 Forecast

Enterprise Action Enterprise Action Program FY2025-2026

INITIATIVE SCOPE MILESTONES BENEFITS

Program Enterprise
Resource
Software system to automate and
streamline core business
•

•
Fall 2024: System design
& Development
Summer 2025:
Cost savings & efficiencies
will be recognized
from consolidating 35
systems to one, saving
processes by linking multiple Deployment and Support
Planning (ERP) licensing fees, as well as
systems and reporting on an of core systems
Modernization transitioning from on-
The Enterprise Action Program captures the roadmap of integrated digital platform. • Spring 2026: Change
Program premise to a cloud structure,
management &
initiatives and project investments over the next one to communications
saving over $8M annually
two years that are delivering on the objectives of Metro’s once implemented.

Strategic Transformation Plan. Through these efforts, • Spring 2025: Tech-

we are enhancing process efficiencies across the
Establish secure, modernized
business groups that directly support our Operations
Digital infrastructure and processes to
and Delivery functions. These programs are innovating
Modernization digitally activate the Strategic
processes across Metro to drive down costs, modernize Transformation Plan.
our capabilities, and enhance public safety of the overall
system.
Integrating all 30K cameras
across Metro’s fleets, station
facilities, administrative buildings
Enterprise Video
to fully support the Metro
Operations &
Integrated Command and
Security System
Communications Center,
enhancing safety and mitigating
risk.
The Training Academy will be a
Center of
centralized program to train
Excellence
personnel, store information, track
Training
data, create reporting, organize
Academy
and upskill our teams.
enabled frontline
enhancement
This will reduce staff hours,
• Spring 2025: Enterprise
external risk,
Asset Management
and standardize systems
System Upgrade
• Fall 2025: Modernization
and document control.
of web and content
management
A cultural shift in
• Fall 2024: Onboard
operationalizing an
integrator to stand up
enterprise video system will
Enterprise Video System
reduce crime, enable faster
• Install cameras on 6k train
response times, and enable
fleet and enhance
proactive decision-making
recording on 7k trains
during incident response.
• Develop Center of
Excellence Training vision
This initiative will reduce
and strategy (short,
redundancy, improve
medium, and long-term)
productivity, increase
• Implement Center of
employee retention, and
Excellence Training
reduce risk of failures.
Academy

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Revised FY2025 Proposed Budget and FY2026 Forecast

Bus & Access Bus Action Program FY2025-2026

INITIATIVE SCOPE MILESTONES BENEFITS

Action Program Bus Network

Redesign
Develop and implement a
transformative year one bus
network within existing
• FY2025: Finalize
and adopt new
Metrobus network
This initiative will
increase ridership
providing more frequent
resources that straightens out and formula service and making
bus routes, connects to places • FY26: Implement new connections
The Better Bus initiative rethinks, redesigns, and revitalizes people want to go at times new network with
they want to travel, and jurisdictional
bus service to better serve the needs of the region. This
balances bus stop spacing. partners
regional effort requires cooperation across Metro and its
jurisdictional partners to successfully implement enhanced
bus service while delivering specifically on the objectives of Bus Priority Program Improve bus service and • FY2025 fully Increase ridership by
Metro’s strategic plan. equity by allowing buses to rollout Clear Lanes making buses more
travel efficiently and reliably program in reliable and reducing
We are awarding a multi-year contract that includes up to 250 with the aid of new technology coordination with travel time.
battery-electric buses (BEB) to operate out of three newly- and intelligent roadway design. DDOT
redesigned bus garages that offer the infrastructure to charge • FY2026 develop Investment will reduce
our BEB fleet. The new buses feature new fareboxes, live requirements for daily operation hours,
Transit Signal fuel costs, and
camera access, and customer information screens alerting
Priority emissions.
riders to next stops.
Bladensburg, Replace and rebuild to FY2025 and FY2026: Utilizing a $104M FTA
Additionally, MetroAccess will be undergoing changes to Northern & Cinder accommodate the transition of • Advance design grant to modernize our
improve operational effectiveness by redesigning Bed Garage converting the fleet to zero- and construction infrastructure and
the business model to improve service and quality Replacement emission buses. deliver on regional
oversight. Access and the Digital Modernization team will sustainability goals.
develop requirements to procure a new scheduling software MetroAccess AI Pilot Intelligent booking by a digital Launched in Q2 of This will reduce
that will allow employees and customers access to real-time assistant of one-way or round FY2024 extended wait times
arrival and tracking data. trips, and digital assistant and improve the
support for incoming calls. customer experience.
MetroAccess Service Service delivery awarded by Starts in FY2025 This will help manage
Model Changes zone reducing providers from expenses and provide
four to one or two. Re-launch better quality control
non-dedicated service through and oversight.
micro-zone allocation.

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Revised FY2025 Proposed Budget and FY2026 Forecast

Rail Action Rail Action Program FY2025-2026

Program INITIATIVE
Rail Program
SCOPE
Restore automatic door operations and
resume automatic train operations.
•
MILESTONES
Red Line door automation
implemented FY2024,
BENEFITS

systemwide on track for spring

To achieve world-class rail service befitting the National Capital Resume maximum authorized speeds per • Revised speed-related rules
safe system design criteria. under system safety review
Region, Metro’s Strategic Transformation Plan includes • Auto train operation concept of This program will save
initiatives that modernize fleet, signals, staffing, and fare Create design specifications to advance operations under review by up to $20M annually.
technology, while improving safety and customer service. Metro GoA 3/4 train operations through safety commission
modernization of signal system and
is already implementing automatic door operations on the Red addition of platform screen doors.
Line and will activate auto doors systemwide this spring. The
agency will also advance automatic train operations coordinating
with the safety oversight commission. Customer-facing staff have
begun using tablets to move from paper to electronic forms, Fleet of the 256, 8000-series railcars ordered to retire • Starting final design phase This program will
driving operational improvements and better customer support. future oldest cars in fleet and improve reliability. • Finalize soft mock-up and improve reliability,
show in public increase capacity, and
Hitachi Rail will build 256 railcars in Maryland that will retire drive down risk
allowing us to retire
Metro’s oldest fleets, increasing reliability and decreasing vehicle antiquated vehicles.
maintenance costs. The introduction of open gangways will
increase safety, security and passenger capacity. The use of Track access Increase productivity of overnight railroad • Launch revised procedures in
efficiency maintenance through streamlined Summer 2024 This initiative will save
aluminum car bodies instead of steel reduced the production processes to track access. up to $64M annually
costs and production time. In addition, the trains will be
automation-ready in preparation for Metro’s advanced signaling
Improve fare Make fare purchases more convenient • Installing taller faregate doors
system. technology and reliable through technology system-wide by Fall 2024 Retrofitting faregates
improvements and i • New mobile functions will reduce fare
Metro is preparing for future implementation of next-generation • Replace back-office fare evasion and capture
rail service through communication-based train control (CBTC). system $15M annually.
This world-class standard will increase efficiency by Other investments will
implementing GoA 3/4. This technology will be paired with maintain state of good
platform screen doors, which increases safety for passengers repair and improve
system reliability.
and improves service reliability.

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Summary Metrics
FY2022 to FY2026
Metro Overview
FY2022
Actual
FY2023
Actual
FY2024 FY2025
Projected Revised
FY2026
Forecast

Ridership 142.2M 199.7M 232.5M 226.6M 234.6M

Passenger Revenue $213.5M $291.6M $343.7M $387.1M $396.5M
Operating Budget % YoY Change 8.6% 7.0% 3.2% 1.4% 2.7%
Operating Budget % YoY Change (Gross Expense) 8.6% 7.0% 9.4% 0.0% 3.0%
Crime Rate (Part 1 Crimes per Million Trips) 5.8 7.7 7.9 7.5 7.1

Metrorail Statistics
Rail Ridership 60.1M 95.8M 120.3M 113.7M 115.6M
Railcar Miles 103.8M 110.2M 134.0M 117.2M 117.2M
Rail Customer Satisfaction 69% 84% 88% 85% 85%
On-Time Performance 79% 90% 87% 90% 90%
Escalator Availability 92.9% 93.6% 94.2% 94% 94%
Elevator Availability 97.8% 98.3% 98.4% 98% 98%
Average Fare $2.69 $2.42 $2.67 $3.00 $3.00
Customer Trips with 6 Minutes or Better Service 0% 36% 81% 75% 75%
Passengers per Train Trip (Average) 251 284 267 280 286
Operating Expense per Vehicle Revenue Mile ($) $23.00 $19.87 $12.66 $11.81 $11.94
Railcar Mean Distance Between Failure (mi) 24,900 26,350 30,520 39,700 39,700

Metrobus Statistics
Bus Ridership 80.8M 102.5M 110.8M 111.4M 117.5M
Total Bus Miles 48.3M 49.8M 50.9M 52.4M 52.4M
Bus Revenue Miles 37.8M 38.2M 39.6M 40.7M 40.7M
Bus Customer Satisfaction 69% 71% 77% 80% 85%
On-Time Performance 77% 77% 76% 77% 78%
Average Fare $0.59 $0.54 $0.44 $0.48 $0.48
Note: Ridership includes tap and non-tap ridership. Rail tap ridership is projected Customer Trips with 12 Minutes or Better Service 39% 39% 45% 50% 50%
higher in FY2025 compared to FY2024. Total projected ridership is lower due to Passengers per Bus Trip (Average) 16 19 21 25 26
reduced non-tap ridership and expected ridership loss due to fare increase and Operating Expense per Vehicle Revenue Mile $23.60 $25.18 $20.19 $20.80 $21.85
targeted service cuts. If we do not implement targeted service cuts and fare increase Bus Mean Distance Between Failure (mi) 8,910 7,770 6,720 7,000 8,000
in FY25, ridership would be 238M trips.
MetroAccess Statistics
More information is available at Metro’s Open Data Hub, MetroAccess Ridership 1.3M 1.4M 1.5M 1.5M 1.5M
MetroAccess Customer Satisfaction 83% 77% 81% 83% 85%
https://www.wmata.com/initiatives/open-data-hub/ On-Time Performance 94% 93% 91% 93% 93%
Average Fare $3.37 $3.27 $2.82 $3.03 $3.03
21 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY
Revised FY2025 Proposed Budget and FY2026 Forecast

Summary Operating Budget – Revenue and Expenses

Revised
FY2025
Revised FY2025 Proposed Budget and FY2026 Forecast Proposed FY2026
($M) Budget Forecast $ Variance
Operating Budget – Revenue and Expenses Passenger Revenue $387.1 $396.5 $9.4
Non-Passenger Revenue $100.5 $101.5 $1.0
Parking $20.7 $20.9 $0.2

Revenues
Advertising $23.7 $24.0 $0.2
Joint Development $15.9 $16.0 $0.2
Fiber Optics $18.5 $18.7 $0.2
Other Non-Transit Sources $21.7 $21.9 $0.2
Total Revenue $487.6 $497.96 $10.4
Gross Expense $2,456.6 $2,530.3 $73.7
Preventive Maintenance Transfer ($164.2) ($174.4) ($10.2)
Personnel Expense $1,629.2 $1,671.0 $41.8
Non-Personnel Expense $723.2 $744.9 $21.7
Services $374.3 $385.5 $11.2

Expenses
Materials & Supplies $123.9 $127.6 $3.7
Fuel (Gas/Diesel/Natural Gas) $41.7 $43.0 $1.3
Utilities and Propulsion Power $113.2 $116.6 $3.4
Casualty and Liability $45.2 $46.5 $1.4
Leases and Rental $11.9 $12.2 $0.4
Miscellaneous $12.9 $13.3 $0.4
Total Expense $2,352.4 $2,415.9 $63.5
Gross Subsidy $1,864.8 $1,917.9 $53.1
Subsidy

*FY2025 has 0% gross expense growth from FY2024 Budget. Total Expenses includes Federal Relief ($95.0) $0.0 $95.0
preventive maintenance (PM) transfer of operating expenses to the capital budget.
Note: Amounts may not sum due to independent rounding Net Subsidy $1,769.8 $1,917.9 $148.1

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 Appendix

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